POST UTME LASU 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments is in equilibrium when the current account is equal to the capital account. If the country's current account is -$100 million and the capital account is $150 million, what is the net capital outflow?
A. $250 million
B. $150 million
C. $100 million
D. $50 million
Question 2
A monopolistically competitive firm is facing a decrease in demand for its product. The firm's marginal revenue (MR) and marginal \cost (MC) curves are given by the following equations:
A. The firm will increase its price and reduce its output.
B. The firm will decrease its price and increase its output.
C. The firm will keep its price and output unchanged.
D. The firm will increase its price and increase its output.
Question 3
A consumer has a budget of ₦1,000 and faces a price of ₦100 per unit of a good. If the consumer's demand curve is given by Q = 10 - 0.1P, what is the optimal quantity?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 4
A country's inflation rate is 5% and its nominal interest rate is 10%. If the country's real interest rate is 5%, what is the expected rate of return on investment?
A. 10%
B. 5%
C. 15%
D. 20%
Question 5
A country's GDP is $100 billion, and its GNP is $120 billion. What is the value of net factor income from abroad?
A. ( $20 billion )
B. ( $30 billion )
C. ( $40 billion )
D. ( $50 billion )
Question 6
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is -2, what is the percentage change in quantity demanded when the price increases by 10%?
A. 20%
B. 30%
C. 40%
D. 50%
Question 7
A country's GDP is given by the following equation:
A. The country's GDP is equal to its national income.
B. The country's GDP is equal to its national income plus the value of net exports.
C. The country's GDP is equal to its national income minus the value of net imports.
D. The country's GDP is equal to its national income plus the value of net imports.
Question 8
The government of Nigeria has introduced a new policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing the use of fertilizers. However, some critics argue that the policy will lead to an increase in inflation. Which of the following is a possible reason for this increase in inflation?
A. The increased demand for fertilizers will lead to a shortage of fertilizers, cau\sing prices to rise.
B. The subsidies provided to farmers will lead to an increase in the money supply, cau\sing inflation.
C. The improved irrigation systems will lead to an increase in crop yields, cau\sing prices to fall.
D. The increased use of fertilizers will lead to an increase in the \cost of production, cau\sing prices to rise.
Question 9
A firm is considering two production processes. Process A has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. Process B has a fixed \cost of ₦150,000 and a variable \cost of ₦30 per unit. If the firm produces 10,000 units, which process is more profitable?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 10
A firm's \cost function is given by C(q) = 10q + 100. If the market price is $15, what is the firm's profit-maximizing quantity?
A. \( q = 5 \)
B. \( q = 10 \)
C. \( q = 15 \)
D. \( q = 20 \)
Question 11
A country's GDP is given by the following equation:
A. The country's GDP is equal to its national income.
B. The country's GDP is equal to its national income plus the value of net exports.
C. The country's GDP is equal to its national income minus the value of net imports.
D. The country's GDP is equal to its national income plus the value of net imports.
Question 12
A firm is producing at a point where its marginal \cost is equal to its marginal revenue. If the firm's marginal \cost is 10 and its marginal revenue is 20, what is the price at which the firm will produce 40 units?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 13
A firm is facing a decrease in demand for its product. The firm's marginal revenue (MR) and marginal \cost (MC) curves are given by the following equations:
A. The firm will increase its price and reduce its output.
B. The firm will decrease its price and increase its output.
C. The firm will keep its price and output unchanged.
D. The firm will increase its price and increase its output.
Question 14
A monopolist faces a demand curve given by Q = 100 - 2P. The marginal revenue function is MR = 200 - 2Q. If the firm's marginal \cost is 20, what is the optimal price and quantity?
A. P = 50, Q = 25
B. P = 40, Q = 30
C. P = 30, Q = 35
D. P = 20, Q = 40
Question 15
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its total revenue?
A. Total revenue will decrease
B. Total revenue will increase
C. Total revenue will remain unchanged
D. Total revenue will be unaffected

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: